'SPY' Eclipses $250B

The world's largest ETF hit a new milestone as investors added $15 billion to ETFs overall during the week.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

Growing euphoria in the stock market pushed the S&P 500 to multiple record highs this week. Likewise, inflows into U.S.-listed exchange-traded funds continued to reach heights never before seen.

According to the latest FactSet data, $15.2 billion entered ETFs during the week ending Thursday, Oct. 19. The bulk of that―$9.5 billion―went into U.S. equity ETFs, including $4.1 billion into one fund alone: the SPDR S&P 500 ETF Trust (SPY)

SPY easily took the top spot on this week's top inflows list. Its latest inflows, along with the market's ascent, pushed SPY's total assets under management to $250 billion. That's the highest asset total ever for the world's largest ETF.

But even as assets for the fund reach new milestones, SPY curiously still has net outflows for the year as a whole, totaling $6.7 billion. Intense competition from lower-cost rivals such as the iShares Core S&P 500 ETF (IVV) have taken a toll on the behemoth.

Net ETF inflows for all ETFs in 2017 now stands at $369 billion, a new annual record.

Tax Reform Hopes Fuel Stocks

Speaking of records, the stock market continued to make new ones on a near-daily basis this week. The S&P 500 leapt as high as 2,574, equaling a return of nearly 17% for the year.

Hopes that a sweeping tax reform bill could be passed in the near future grew after the Republican-led Congress successfully passed a $4 trillion budget blueprint.  

"This action keeps us on track to enacting historic tax reform that will mean more jobs, fairer taxes and bigger paychecks for American families," House speaker Paul Ryan said of the bill.

Analysts estimate that tax cuts for corporations could mean a boost in profits of 7-12% next year, which is a big reason stocks have been climbing steadily higher recently.

Meanwhile, in fixed-income markets, the benchmark 10-year Treasury bond yield jumped from 2.28% to 2.38% week-over-week. The Federal Reserve is widely expected to hike interest rates at its December meeting.

In other Fed news, sources indicated that President Trump was leaning toward nominating Fed Governor Jerome Powell as the next chair of the central bank to replace Janet Yellen in February. If he gets the nod, Powell may continue Yellen's policies of gradual rate hikes, while avoiding upsetting markets.

SPY At The Top

Taking a look at flows for individual products, SPY easily took the top spot.  on this week's list, with inflows of $4.1 billion. A distant Nos. 2 and 3 on the weekly inflows list were the iShares Core U.S. Aggregate Bond ETF (AGG) and the iShares Core MSCI Emerging Markets ETF (IEMG), with creations of around $600 million each.

On the outflows side, the iShares 3-7 Year Treasury Bond ETF (IEI), the iShares NASDAQ Biotechnology ETF (IBB) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) were a few notable names to fall out of favor during the week.

For a full list of this week's top inflows and outflows, see the tables below:

Top 10 Creations (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
SPYSPDR S&P 500 ETF Trust4,150.64250,605.701.68%
AGGiShares Core U.S. Aggregate Bond ETF613.6951,060.611.22%
IEMGiShares Core MSCI Emerging Markets ETF572.1240,426.881.44%
LQDiShares iBoxx $ Investment Grade Corporate Bond ETF460.7238,811.061.20%
IEFAiShares Core MSCI EAFE ETF453.8738,956.681.18%
EEMiShares MSCI Emerging Markets ETF418.3537,876.241.12%
XLFFinancial Select Sector SPDR Fund371.5128,333.351.33%
XLIIndustrial Select Sector SPDR Fund357.0713,190.032.78%
VOOVanguard S&P 500 ETF341.2876,064.870.45%
IVViShares Core S&P 500 ETF333.70130,783.960.26%

Top 10 Redemptions (All ETFs)

TickerNameNet Flows ($,mm)AUM ($, mm)AUM % Change
QQQPowerShares QQQ Trust-334.2853,432.99-0.62%
IEIiShares 3-7 Year Treasury Bond ETF-308.387,806.16-3.80%
IBBiShares NASDAQ Biotechnology ETF-269.8510,298.68-2.55%
HYGiShares iBoxx $ High Yield Corporate Bond ETF-246.6820,004.97-1.22%
TLTiShares 20+ Year Treasury Bond ETF-188.778,430.98-2.19%
TIPiShares TIPS Bond ETF-136.2523,679.61-0.57%
VXFVanguard Extended Market ETF-108.145,241.58-2.02%
XOPSPDR S&P Oil & Gas Exploration & Production ETF-89.362,100.36-4.08%
IEFiShares 7-10 Year Treasury Bond ETF-85.327,540.64-1.12%
SLViShares Silver Trust-76.105,513.79-1.36%

ETF Weekly Flows By Asset Class

 Net Flows ($, mm)AUM ($, mm)% of AUM
U.S. Equity9,525.001,794,381.500.53%
International Equity3,454.96761,201.800.45%
U.S. Fixed Income1,886.09523,199.420.36%
International Fixed Income242.0456,727.920.43%
Commodities-146.3566,015.26-0.22%
Currency-15.291,324.59-1.15%
Leveraged252.1130,500.730.83%
Inverse-65.3217,094.22-0.38%
Asset Allocation32.758,584.350.38%
Alternatives78.214,088.801.91%
Total:15,244.203,263,118.590.47%

Top 10 Volume Surprises, Funds >$50 mm AUM

TickerNameAverage Volume
(30 Day)
1 Week Average
Volume
% of Average
IDLBPowerShares FTSE International Low Beta Equal Weight Portfolio27,164102,110375.91%
SMLFiShares Edge MSCI Multifactor USA Small-Cap ETF11,30346,368410.22%
SPLGSPDR Portfolio Large Cap ETF 3,71820,340547.11%
SPTMSPDR Portfolio Total Stock Market ETF 5,50336,182657.45%
PSCDPowerShares S&P SmallCap Consumer Discretionary Portfolio4,83013,453278.55%
CLTLPowerShares Treasury Collateral Portfolio3202,028634.60%
SPYVSPDR Portfolio S&P 500 Value ETF 5,58927,935499.82%
SPYGSPDR Portfolio S&P 500 Growth ETF 13,86067,474486.82%
RJIElements Rogers International Commodity Index-Total Return ETN263,627770,174292.14%
RINGiShares MSCI Global Gold Miners ETF331,311801,972242.06%

Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

 

 

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.